MAHB eyes 10 new airlines, MYR1-B foreign investments in 2019

Airport operator Malaysia Airports Holdings Bhd (MAHB) has bared plans for next year that include pursuing more airlines and acquiring MYR1 billion (almost US$240 million) in future foreign direct investments for two of its business components.

MAHB general manager for airline marketing Mohd Sallauddin Mat Sah told local media the company will focus its efforts in 2019 on attracting 10 new premium airlines and low-cost carriers (LCCs) to Malaysia, especially to its five main airports.

The airports are KL International Airport (KLIA), klia2, Penang International Airport, Kota Kinabalu International Airport, and Kuching International Airport.

Mohd Sallauddin said the potential airlines might come from China, Middle East countries, and other nations in Asia and other regions. He said the company is banking on Malaysia’s variety of tourist attractions and accessibility in order to attract more foreign airlines.

In 2018, MAHB attracted 13 airlines, of which 11 have started operations while another two will be launched by year-end.

Mohd Sallauddin added that this year, MAHB added a total of 50 new international routes to its list, while international frequencies per week from both local and foreign carriers increased by 458 as of October 2018.

Luring foreign investments

Relatedly, MAHB said it anticipates MYR1 billion in investments from foreign capitalists in the next three to five years after it has made an initial investment of MYR150 million this year in two of its business segments.

General manager of land development Randhill Singh said MAHB is investing MYR150 million from 2018 to 2020 to develop the infrastructure for its air cargo and logistics sector and aerospace segment.

He told local media the company has started investing this year and expects third-party investors to build the facilities as well as install the suitable system and technology.

Among the airline operator’s top priorities in 2019 are to continue to develop the Digital Free Trade Zone (DFTZ) and to set down the master plan for Subang Airport’s regeneration, including the development of Subang Aerotech Park as part of the overall KLIA Aeropolis masterplan.

Of the MYR150 million in initial investment by the airport operator, Randhill said about MYR60 million has been spent on infrastructure development at KLIA and Subang Aerotech Park.

Randhill said the Subang Aerotech Park will be developed together with a strategic delivery partner, to be announced early next year. The investment also includes maintenance, repair and operations (MRO) work on hangarage at KLIA.

As for the awaited MYR1 billion in future investment, Randhill said more than 50% is expected to come from foreign investors, comprising existing and new ones.